Professional Documents
Culture Documents
Deciding to start your own business is only half the battle; the other half
includes coming up with a business plan. One of the most critical parts of
figuring out a business plan is deciding your business's structure.
What Is an LLP?
The LLP was first introduced in 2005 in Singapore. It was created to combine
the advantages of a partnership and an LLC (Limited Liability Company). It
was primarily designed for professionals who wanted to build a practice by
joining together. This includes licensed professionals such as architects and
lawyers, among others.
Pros:
● The law endows LLPs with a juridical personality, giving it some of the
same powers that corporations have.
● LLP structures a business in a way that limits their personal liability.
● Setting up a business as an LLP is a relatively quick and
straightforward process, with fewer requirements than incorporating a
company.
● LLP registration fees are lower compared to incorporating a company.
● General meetings and share allotments are not necessary for an LLP.
Cons:
At the end of the day, each business structure has its own boon and bane. As
such, it’s key to consult a professional and understand which is best for your
organisation. If you are a foreigner and plan on structuring a business as an
LLP in Singapore, you can seek help by engaging nominee director services.
Conclusion
Now that you know the pros and cons that come along with the LLP structure,
you can proceed to tackle the rest of the requirements on the list. By working
together with reliable, experienced audit firms, their expertise can streamline
the setup and get your business up and running sooner than later.